A Case Study in Corporate Responsibility: Removal of Tobacco Products by CVS Health

Abstract

Many companies are investing in improving business ethics and corporate social responsibility, because it enhances their reputations and creates a better environment for their stakeholders. One example is CVS Health that recently made a decision to remove tobacco products from all of the stores. In order to understand the reasoning behind this strategy and the ramifications of this decision, one must explore the overview of the company along with its history, industry analysis, and business model. This study analyzes the ethics and corporate social responsibility by applying the methods of utilitarianism, Kantian ethics, maximization of profits, moral minimum, stakeholder interests, and corporate citizenship. Also, the competitive advantage of CVS Health is described in comparison to the competitors such as Walgreens and Rite Aid with their reactions.